An engineer loan is one among the slew of professional loans targeted for individuals in a specific profession available in the market. Tailored to meet the diverse needs of engineers, this loan is easy to avail. If you are an engineer scouting for funds to meet your personal and professional needs, this guide will provide you with all the necessary information on engineer loans.
Important things to know about engineer loans
- Available for salaried and self-employed engineers
An engineer loan is available for both salaried as well as self-employed engineers. For instance, Engineer Loan from Bajaj Finserv has two variants – Personal Loan for Engineers and Business Loan for Engineers.
While the former is targeted towards salaried engineers, the latter is for those running their own business. Both the loans offer a substantial loan amount – Rs.25 lakh and Rs.30 lakh respectively – and can be availed with minimal documentation.
- Collateral-free loan
An engineer loan is a collateral-free loan. An unsecured mode of finance, you don’t need to pledge any personal or professional assets as security to your lender to procure it.
Note that being a collateral-free loan, the rate of interest is slightly on the higher side. However, a little research would help you avail this loan at the best interest rate on your engineer loan.
- Requires minimal documentation with quick disbursal
An engineering loan requires minimal documentation. For example, if you want to avail this loan from Bajaj Finserv, the documents required are:
- KYC documents
- Engineering degree certificate
- Bank statement of 3 months
- Salary slips of 3 months
- Passport-size photograph
Self-employed engineers along with the above documents need to produce proof of business vintage of at least 3 years. The documentation process is quick and easy with doorstep pick-up of documents. Also, once everything is in order, the loan is disbursed within 24 hours.
- Can help meet unplanned expenses
New-age engineer loans, like the one offered by Bajaj Finserv can help meet unplanned expenses with its Flexi Loan facility that allows withdrawals as and when required from the approved loan limit, without having to make multiple applications. Additionally, interest is charged only on the amount borrowed and not on the entire limit.
This lowers EMIs, thus helping in better management of finances. The loan also comes with a flexible tenor to facilitate repayment.
How to get an engineer loan?
Availing an engineer loan is easy. There are various aggregator portals that list offerings from different lenders offering this loan. Once you choose your lender, you can visit the office, fill up the form and submit the relevant documents. Today, most lenders allow you to make an online application for the loan. Once your application is accepted, the said amount is transferred into your bank account.
However, before applying for engineer loan do check your credit score as a high score helps you qualify for a bigger amount at a competitive interest rate.